Credit outlook stable for Community Choice Aggregator
Sunnyvale, Calif. – S&P Global Ratings affirmed its ‘A’ issuer credit rating (ICR) with a Stable Outlook for Silicon Valley Clean Energy (SVCE) in a report issued May 11, 2023. The initial S&P credit rating was awarded in 2021 and affirmed for the first time in 2022.
“SVCE manages its financials with transparency and prudence; the affirmed credit rating confirms this,” said George Tyson, Los Altos Hills Councilmember and SVCE Board Chair. “These ratings are an example of SVCE’s financial strength and enable the agency to negotiate energy supply contracts at lower costs and preserve financial liquidity, allowing SVCE to pass savings to customers.”
The rating reflects SVCE’s stable, strong, and diverse customer base, financial strength, diverse clean energy portfolio, strong governance, proactive risk management, and strong policies and planning. These factors position SVCE well for the increasingly stringent emissions regulations and competitive and volatile wholesale energy markets.
SVCE values these credit ratings because they affirm the agency’s ability to have funds to cover long-term power purchase commitments while taking into consideration customer retention rate, competitiveness, and financial liquidity.
In early 2023, SVCE received its sixth clean and unmodified financial audit from Pisenti & Brinker, another sign of financial strength for the agency. During the 2021 – 2022 fiscal year, SVCE added nearly $47 million to reserves, as of September 30, 2022, total revenues were $363.5 million primarily from the sale of clean power. SVCE received its first credit rating, Baa2, from Moody’s in 2020. Learn more about SVCE finances and budget at svcleanenergy.org/plans-policies-reports. SVCE’s financial information is publicly available and reviewed through an annual process by the board of directors.
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About Silicon Valley Clean Energy
Silicon Valley Clean Energy is a not-for-profit, community-owned agency providing clean electricity from renewable and carbon-free sources to more than 275,000 residential and commercial customers in 13 Santa Clara County jurisdictions. As a public agency, net revenues are returned to the community to keep rates competitive and promote clean energy programs. Silicon Valley Clean Energy is advancing innovative solutions to fight climate change by decarbonizing the grid, transportation, and buildings. Learn more at SVCleanEnergy.org.
Media Contact
Michaela Pippin
Michaela.pippin@svcleanenergy.org
(408) 549-2690
